b. Given the data in the problem above, what is the Incremental Benefit to Cost ratio between the options?

Enter in your answer rounded to 2 decimal places.

Consider the two alternatives below. Knowing that your company uses a MARR of 10%, use this data to answer the questions below. Premium Non-Premium $80,000$40,000 Option Initial Cost Annual Savings$14,600 $12,000 Salvage Value Lifetime $2,000 $1.000 10 years 5 years What is the B/C ratio of the Premium Option? (Enter your answer rounded to 2 decimal places)